The shares of India’s leading plastics product manufacturer, offering a wide and comprehensive range of plastic products in India, are in focus after signing an MoU for an acquisition worth USD 30 million.
Price Action
The shares of Supreme Industries Ltd, with a total market capitalization of Rs 42,667.69 Crore, reached an intraday high of Rs 3,365 per share, gaining around 1.4 percent in today’s trade. As of 10:00 am, the shares were trading at Rs 3,350 per share, which was 1 percent higher than the previous closing price of Rs 3319.45. The shares have generated a three-year return of 68 percent in the past three years and a return of 184 percent in the last five years.
What Happened
As per a press release dated March 11, 2025, Supreme Industries Ltd has signed a Memorandum of Understanding (MoU) with Wavin Industries Ltd for the acquisition of its Indian Piping (Building and Infrastructure) business. The aggregate consideration of this acquisition stands at USD 30 million plus net working capital on the closing date, which is yet to be decided. The indicative period for the completion of the acquisition is June 2025.
Through this deal, the piping business at Wavin’s manufacturing units in Hyderabad and Rajasthan will be acquired by Supreme Industries, and the company will have exclusive access to all existing technologies from “Wavin B.V.”, Netherlands (Parent Company), and other new technologies to be developed during seven years for India and SAARC Countries.
The acquisition of Wavin India would result in increasing the capacity of the company’s Piping Division by 73,000 MTPA. The acquisition will also facilitate catering to areas of North and South India efficiently.
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Financials
The company reported a marginal increase of 2.5 percent YoY in Revenue from Operations from Rs 2,449 Crore in Q3FY24 to Rs 2,510 Crore in Q3FY25. Their Net Profit declined by 27 percent YoY from Rs 256 Crore to Rs 187 Crore over the same period. Its Sales Volume stood at 1,62,733 MT, which is a growth of 2.98 percent YoY. The company is debt-free and has a cash surplus of Rs 290 Crores as of Q3FY25.
About Supreme Industries Ltd
The company is a prominent manufacturer of plastic products, with business divisions spanning Plastic Piping, Consumer Products, Packaging Products, and Industrial Products. It operates 30 manufacturing plants and exports to over 55 countries, supported by a network of more than 6,000 distributors. As of December 2024, the company has sold over 640,000 metric tons of products.
Written By Adhvaitha Nayani
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